Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: After the 2004 legislative session,
then Governor Locke requested the commission resume its
contributions to problem gambling. In November 2004, the
commission adopted a rule to establish a fee to provide a
stable funding source of (hull 9/28/05) approximately $232,000
each year for a problem gambling helpline, and training and
awareness services (RCW 9.46.071). The fee was to be paid by
licensed charitable/nonprofit and commercial organizations and
included language that the fee would automatically expire if
the legislature adopted a law that appropriated funds for the
same purposes.

During the 2005 legislative session, a law was adopted to
fund problem gambling treatment, education, and awareness.
The law transfers state lottery revenue and creates a new
business and occupation (B&O) tax on gambling businesses
(Gambling Commission licensees and live horse racing tracks)
that have annual gross income over $50,000. The B&O tax will
be 0.1% of gross income (after prizes) through June 30, 2006,
and 0.13% thereafter. The bill takes effect July 1, 2005.
The bill prohibits the Gambling Commission, while the new B&O
tax is in effect, from increasing license fees to fund a
program for problem and pathological gambling. However,
should the B&O tax later be repealed, the Gambling Commission,
Horse Racing Commission, and the state lottery may contract
for services to assist in providing treatment for problem and
pathological gambling, and the Gambling Commission may
increase license fees to fund the authorized services. As
written, in the commission's original rule and the legislation
that passed, the commission's problem gambling fee will
expire. However, in the interest of being clear, this rule is
up for repeal.

Process for Developing New Rule:
Rule change developed
by agency staff. Interested parties can participate in the
discussion of this proposed change by attending a commission
meeting, or contacting the agency rules coordinator at the
contact information below.